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It’ll be an action-packed week for investors in ASX shares.

Here are the three things to keep an eye on, according to eToro market analyst Josh Gilbert:

1. Australian quarterly inflation numbers

The Australian Bureau of Statistics will release the consumer price index figures for the March quarter.

Gilbert reckons this will have a huge impact on what the next interest rate move will be after it was kept steady in April.

“The pause in interest rates may be short-lived if this reading comes in hotter than the market expects, as it did in Q4 2022 at 7.8%.

“The monthly inflation indicators are a good reading for the RBA but don’t give the complete picture with a maximum of 73% weight of the overall CPI basket, meaning this reading could provide more surprises.”

Experts are expecting inflation to be at 7% with a resurgence in immigration fueling demand for goods and services, and therefore inflation.

“After plenty of scrutiny over the last week, Philip Lowe and the board’s next move will be more important than ever, and the latest reading on inflation will be the focus for investors next week.”

2. Two ASX 200 giants to provide quarterly updates

The market will watch with interest as lithium miner Pilbara Minerals Ltd (ASX: PLS) and Coles Group Ltd (ASX: COL) reveal their latest numbers and outlook.

Pilbara has been an S&P/ASX 200 Index (ASX: XJO) favourite among investors after it cashed in on high lithium prices in the first half of this financial year.

“In 2023, lithium prices have fallen dramatically, with question marks over EV demand and an end to some government subsidies globally,” said Gilbert.

“However, the key will be the increase in production, which should be outlined next week and help offset falling lithium prices.”

Shares for supermarket giant Coles have outperformed the market so far this year, rising more than 10.8%.

“Investors were rewarded earlier this year with an increased dividend, and they will be hoping that another solid update can come next week.”

With many Australians feeling the pinch on cost of living, they are tending to spend more at the supermarket compared to eating out.

“In an uncertain economic environment, investors are looking for a defensive stock and given its essential business model, Coles is just that,” said Gilbert.

“So [this] week will see if the company is still firing on all cylinders.”

3. Big tech report their earnings

Over in the US, many of the tech behemoths that are popular with Australian investors are announcing their latest figures this week.

According to Gilbert, this includes Alphabet Inc (NASDAQ: GOOGL), Amazon.com Inc (NASDAQ: AMZN), Microsoft Corp (NASDAQ: MSFT) and Meta Platforms Inc (NASDAQ: META).

The NASDAQ-100 (NASDAQ: NDX) has already risen 19% this year, so these results could prove quite the catalyst.

“Their earnings will be critical to justify their valuations,” said Gilbert.

“Last quarter saw resilient earnings, which will be needed again to support Big Tech’s performance so far in 2023.”

Meta’s results on Thursday will be especially interesting, as the stock has rocketed a phenomenal 79% since the start of the year.

“With advertising budgets dwindling, Meta’s earnings are expected to decline 27% year-over-year, but the focus will likely be on cost control after recent job cuts and broader scrutiny over other operating expenses to support profitability.”

The post 3 things ASX investors should watch this week appeared first on The Motley Fool Australia.

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More reading

• Analysts say Pilbara Minerals and this ASX dividend share are buys
• Building wealth through dividend investing: 5 ASX shares to boost your income
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Here are the 3 most heavily traded ASX 200 shares on Thursday

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tony Yoo has positions in Alphabet and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon.com, Meta Platforms, and Microsoft. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool Australia has recommended Alphabet, Amazon.com, and Meta Platforms. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Small cap ASX shares can often surge higher and faster than their larger cap rivals for a whole bunch of reasons.

They may be in an earlier stage of their business life cycle, meaning market share could be rising very quickly. Or the industry that they are in could be fairly new.

Or the companies could be offering more innovative products and services compared to the incumbents.

This potential is especially relevant now after 18 months of underperformance from small-cap stocks. Investors have fled to safety of large caps while inflation, interest rates and wars make them anxious.

Here is a pair of small-cap ASX shares that the team at IML are loving at the moment:

8 of 9 analysts reckon this stock is a buy

Automotive parts provider GUD Holdings Limited (ASX: GUD) has already enjoyed a handsome 25.4% increase in its share price so far in 2023.

The IML analysts put this down largely to the first half performance.

“The result was underpinned by a strong performance from its core wear and tear business, while the recently acquired APG delivered a slight improvement in underlying earnings with a positive outlook on the back of an improving supply of new vehicles,” read their memo to clients.

Despite the spectacular rise, a buying opportunity still exists.

“The stock still trades at a very attractive price of 12 times FY ‘24 earnings, with a yield of 5%, reflecting the very low expectations implied by the market prior to the result.”

The wider professional community largely agrees with the IML team.

According to CMC Markets, eight out of nine analysts currently rate GUD shares as a buy.

Taxis are still going gangbusters

With the rise of ridesharing apps, taxi companies such as A2B Australia Ltd (ASX: A2B) may not be in vogue.

But that hasn’t stopped the A2B share price from rocketing an amazing 43.3% year to date.

A couple of recent catalysts really pleased the market, according to the IML analysts.

“It reported a strong result in February with revenue up 22% and driver volumes recovering from the disruptions caused by COVID,” read the memo. 

“Then in March A2B reported it had sold its Alexandria, Sydney property for a price of $78m which was a strong outcome in a softening property market.”

The IML analysts reckon that a nice gift could be coming for A2B investors after that real estate sell-off.

“The sale should result in a sizable, fully-franked special dividend being paid to shareholders by the end of this calendar year.”

That’s in addition to the usual 3.17% dividend yield that A2B is already paying out.

The post ‘Very attractive price’: 2 small-cap ASX shares to buy before they rocket further appeared first on The Motley Fool Australia.

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More reading

• Why I think it’s a great time to start buying ASX growth shares
• Analysts say Pilbara Minerals and this ASX dividend share are buys
• 5 things to watch on the ASX 200 on Monday
• What is this broker saying about the BHP share price following the miner’s update?
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The ASX share market has been through loads of volatility over the last couple of years. But, this could be a great time to invest in ASX growth shares in my opinion.

We want to be able to buy good businesses at the lowest possible price. But, those prices don’t usually stick around for long, so if we want to try to beat the market then I think it’s important to jump on the opportunities while they’re still there.

Why I think it’s time to buy ASX growth shares

The share market went through uncertainty as interest rates shot higher and inflation caused widespread impacts.

Many ASX growth shares got smashed during 2022, such as Xero Limited (ASX: XRO), Johns Lyng Group Ltd (ASX: JLG), ARB Corporation Ltd (ASX: ARB), Pinnacle Investment Management Group Ltd (ASX: PNI), Australian Ethical Investment Ltd (ASX: AEF) and Seek Ltd (ASX: SEK).

All of those business valuations are still lower than they were 18 to 24 months ago.

Warren Buffett, one of the world’s greatest and wisest investors, once said:

Be fearful when others are greedy and greedy when others are fearful.

He also said in 2001:

To refer to a personal taste of mine, I’m going to buy hamburgers the rest of my life. When hamburgers go down in price, we sing the ‘Hallelujah Chorus’ in the Buffett household. When hamburgers go up in price, we weep. For most people, it’s the same with everything in life they will be buying — except stocks. When stocks go down and you can get more for your money, people don’t like them anymore.

Plenty of businesses are facing uncertain shorter-term conditions. There’s higher wages, higher materials costs, higher financing costs and so on.

But, I don’t believe this will be the situation forever. Inflation may well have peaked in places like Australia and the US, which is what the central banks want to see. But, the next question is how long it will take for inflation to return to 3% or lower. I’ll point out that there are warning signs that inflation could continue at a higher-than-desired level. But, that’s not enough to stop me from investing.

I think that many of the ASX growth shares that I’ve mentioned, and plenty I haven’t named, are good long-term opportunities.

Despite the uncertainties, businesses are continuing to invest and many of them are continuing to grow revenue and hopefully grow earnings.

Economic conditions may worsen during this year as interest rate rises impact households and perhaps consumer-facing businesses. But share prices and GDP don’t necessarily move together.

Which opportunities I’d buy

If I had to narrow the list of names that I mentioned down to three, I’d choose Xero, Pinnacle and Johns Lyng.

I like that Xero is now choosing to become more profitable and focus a bit more on displaying its operating leverage.

Australian Ethical’s funds under management (FUM) have suffered amid the market turmoil. But, an end to asset declines and the benefit of the Christian Superannuation members joining could be a longer-term boost for FUM. In the latest quarterly update, for the three months to March 2023 saw an increase of FUM by $400 million.

Johns Lyng is achieving a lot of profit growth and could benefit from the increasing number of expensively damaging natural hazard events.

But, I’m also optimistic about some other businesses that are heavily involved with using technology in their offering, such as Temple & Webster Group Ltd (ASX: TPW) and Volpara Health Technologies Ltd (ASX: VHT).

The post Why I think it’s a great time to start buying ASX growth shares appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• Brokers say these ASX growth shares could generate big returns for investors
• Why ASX tech shares are so much more attractive than US stocks
• Which stocks does Warren Buffett own (and what can ASX 200 investors learn from this)?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ARB Corporation, Australian Ethical Investment, Johns Lyng Group, Pinnacle Investment Management Group, Temple & Webster Group, Volpara Health Technologies, and Xero. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group, Volpara Health Technologies, and Xero. The Motley Fool Australia has recommended ARB Corporation, Australian Ethical Investment, Johns Lyng Group, Seek, and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Are you looking for dividend shares to buy this week? If you are, then the two listed below could be worth checking out.

Both shares have been named as buys by analysts and have been tipped to provide attractive yields. Here’s what you need to know about these dividend shares:

HomeCo Daily Needs REIT (ASX: HDN)

The first ASX dividend share that has been named as a buy is HomeCo Daily Needs.

HomeCo Daily Needs is a property investment company that focuses on convenience-based assets across neighbourhood retail, large format retail, and health and services.

The team at Morgans is bullish on the company due to the resilience of its cashflows, its huge development pipeline, and favourable trends. The latter includes the “accelerating click & collect trends.”

In respect to dividends, the broker is forecasting dividends per share of 8.3 cents in FY 2023 and 8.4 cents in FY 2024. Based on the current HomeCo Daily Needs share price of $1.19, this will mean dividend yields of 7% and 7.1%, respectively.

Morgans has an add rating and $1.50 price target on HomeCo Daily Needs’ shares.

Pilbara Minerals Ltd (ASX: PLS)

Another ASX dividend share that has been named as a buy is Pilbara Minerals. It is one of the world’s largest lithium miners with some world class operations in Western Australia.

Although lithium prices have pulled back recently, they are still materially higher than the company’s cost of production. This means it is still printing money right now, which bodes well for dividends.

For example, Citi expects this to lead to fully franked dividends per share of 25 cents in FY 2023, 16 cents in FY 2024, and 21 cents in FY 2025. Based on the latest Pilbara Minerals share price of $4.02, this equates to yields of 6.2%, 4%, and 5.2%, respectively.

Citi has an outperform rating and $4.60 price target on Pilbara Minerals’ shares.

The post Analysts say Pilbara Minerals and this ASX dividend share are buys appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why did Pilbara Minerals shares charge higher today?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week on a disappointing note. The benchmark index fell 0.4% to 7,330.4 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to fall on Monday following a poor finish to last week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 8 points or 0.1% lower this morning. In the United States, the Dow Jones, S&P 500, and NASDAQ all rose 0.1%.

Oil prices rise

It could be a positive start to the week for ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices rose on Friday. According to Bloomberg, the WTI crude oil price was up 0.65% to US$77.87 a barrel and the Brent crude oil price rose 0.7% to US$81.66 a barrel. Oil prices rose on Friday following the release of strong economic data in the euro zone and Britain.

BHP rated neutral

Goldman Sachs is sitting on the fence with its recommendation for BHP Group Ltd (ASX: BHP) shares following the miner’s quarterly update. The broker has retained its neutral rating on the Big Australian’s shares with a slightly improved price target of $50.50. It said: “BHP reported a slightly weaker than expected Mar Q operating result with copper, met coal and nickel production all below GSe, whereas Iron ore production and shipments were above GSe but below Visible Alpha Consensus Data.”

Gold price tumbles

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a tough start to the week after the gold price tumbled on Friday night. According to CNBC, the spot gold price dropped 1.25% to $1,994.1 per ounce. This was caused by growing US rate hike bets.

Brickworks named as a buy

The Brickworks Limited (ASX: BKW) share price is good value according to analysts at Morgans. This morning, the broker has retained its add rating on the building materials company’s shares with a $26.10 price target. It said: “Brickworks recently presented to the Morgans network. Overall, the presentation was positive, with management pointing to an incrementally improved outlook for the Australian residential housing market (and in turn the Australian brick business.”

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

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More reading

• What is this broker saying about the BHP share price following the miner’s update?
• Top brokers name 3 ASX shares to buy next week
• Which ASX 200 share has quietly risen 11% in a month?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Better ASX gold share to buy now: Newcrest vs. Northern Star

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks. The Motley Fool Australia has positions in and has recommended Brickworks. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The BHP Group Ltd (ASX: BHP) share price had a tough finish to the week.

A falling iron ore price and the release of a mixed quarterly update put pressure on the mining giant’s shares.

This means it is now trading at $45.02, which is approximately 13% lower than the 52-week high it reached earlier this year.

What did analysts say about the update?

Analysts at Goldman Sachs have been looking over the miner’s update and note that it was a touch weaker than expected. The broker said:

BHP reported a slightly weaker than expected Mar Q operating result with copper, met coal and nickel production all below GSe, whereas Iron ore production and shipments were above GSe but below Visible Alpha Consensus Data.

Goldman also highlights that there were a few changes to its guidance, but they are all broadly in-line with expectations. It adds:

There were several guidance updates, which were all broadly in-line with our modeled estimates including lower copper guidance at Escondida and nickel production at Nickel West, unit costs in the Pilbara and Escondida tracking to the top end, and Pampa Norte and Olympic Dam copper at the top end.

Is the BHP share price in the buy zone?

Although Goldman sees plenty of value in the BHP share price at the moment, it has decided to keep its powder dry with its recommendation.

According to the note, the broker has retained its neutral rating with a slightly improved price target of $50.50 (from $50.40).

Based on the current BHP share price, this implies potential upside of 12.2% for investors over the next 12 months.

Goldman also estimates that its shares offer fully franked dividend yields of 6.8% in FY 2023 and 5.3% in FY 2024, bringing the total potential return into the high teens.

It highlights that BHP’s free cash flow yield is lower than rival Rio Tinto Ltd (ASX: RIO), which it prefers, and suspects it could stay this way due to higher capex expectations. It said:

[F]rom a FCF/DPS perspective, BHP is trading on a FCF/DPS yield of c. 8%/7% & 7%/5% in FY23 & FY24, below Buy-rated RIO (on CL) on 10%/7% & 7%/6%. We see BHP’s minerals capex increasing to US$10bn by mid-decade (above peer RIO at US$9-10bn), which could increase to ~US$11-12bn if the acquisition of OZL is successful.

The post What is this broker saying about the BHP share price following the miner’s update? appeared first on The Motley Fool Australia.

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More reading

• BHP share price slips amid reduced production targets
• BHP share price on watch following third-quarter update
• 5 things to watch on the ASX 200 on Friday
• Which stocks does Warren Buffett own (and what can ASX 200 investors learn from this)?
• ASX 200 mining shares sink as iron ore price nears 2023 low

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

Allkem Ltd (ASX: AKE)

According to a note out of Morgans, its analysts have retained their add rating on this lithium miner’s shares with a trimmed price target of $14.70. Morgans was reasonably pleased with Allkem’s quarterly update, noting that its Olaroz production came in ahead of expectations. And while lithium prices are expected to fall meaningfully in the coming quarter, it notes that prices are still well ahead of its long term expectations. The Allkem share price ended the week at $11.75.

Santos Ltd (ASX: STO)

A note out of Macquarie reveals that its analysts have retained their outperform rating on this energy producer’s shares with an improved price target of $9.95. Macquarie was pleased with the company’s performance during the last quarter. This has reinforced its view that the company’s shares are undervalued at the current level. The Santos share price was fetching $7.16 at Friday’s close.

Xero Limited (ASX: XRO)

Analysts at Goldman Sachs have retained their conviction buy rating on this cloud accounting platform provider’s shares with a slightly boosted price target of $126.00. Goldman has been looking into app data and believes that Xero is performing at least in line with expectations. In light of this, it remains positive and continues to believe that its shares are trading at a level that makes for an attractive entry point into a compelling global growth story. The Xero share price ended the week at $91.87.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

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More reading

• Brokers say these ASX growth shares could generate big returns for investors
• Brokers name 3 ASX shares to buy now
• Should lithium investors buy the dip in the Allkem share price?
• Why ASX tech shares are so much more attractive than US stocks
• Which stocks does Warren Buffett own (and what can ASX 200 investors learn from this)?

Motley Fool contributor James Mickleboro has positions in Allkem and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The ASX All Ordinaries (ASX: XAO) stock Pacific Current Group Ltd (ASX: PAC) might be on course to pay investors significant passive income in the coming years.

For investors who haven’t heard of this business before, it describes itself as a multi-boutique asset management firm. It applies resources, including “capital, institutional distribution capabilities and operational expertise”, to help its partners grow. In other words, it invests in compelling fund management businesses and aims to help them expand.

It’s invested in a number of different managers, including GQG Partners Inc (ASX: GQG), Astarte Capital Partners, Banner Oak, Aether, Roc Partners, Victory Park, and Cordillera.

The company has been building a track record of paying dividends to investors. It grew its dividend each year between FY18 to FY22. Time will tell whether FY23 includes an increase, but the projections on Commsec are currently promising for growth.

Potential for $1,000 of passive income a month

Pacific Current could pay an annual dividend per share of 41 cents in FY23, representing a potential increase of almost 8% compared to the FY22 annual payment. At the current Pacific Current share price, that potential payment represents a grossed-up dividend yield of 8%.

The All Ords ASX stock doesn’t pay a monthly dividend. But we can take the annual dividends and divide that amount into 12 equal parts.

Just using the cash element of the dividend, and ignoring the franking credits, to get $12,000 of annual dividends with the 2023 annual payout, we’d need to own 29,269 Pacific Current shares. The Pacific Current share price at the time of publishing is $7.11, so that would represent a hefty investment of $208,000.

However, the dividend payout is expected to rise in FY24 to 46 cents per share. This would make the forward grossed-up dividend yield around 9%. Thinking about that passive income payment, it would mean an investor would only need to own 26,087 Pacific Current shares. That equates to a slightly more modest investment of $185,500.

Can the ASX All Ords stock deliver dividend growth?

I think that Pacific Current is demonstrating some of the right attributes to deliver growth.

In its FY23 half-year result, it reported that the funds under management (FUM) of its investment partners grew by 3.5% to A$175 billion, while underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew 35% in Australian dollar terms.

The business is expecting growth in both management fees and performance fees, thanks to fund managers raising capital from investors, or having already recently deployed capital. Also, a number of funds or strategies are nearing the point of generating performance fees that will benefit Pacific Current.

On top of that, new commitments and inflows are expected to continue, while additional investments are also expected. Pacific Current recently announced its investment in the fund manager Cordillera.

Once interest rates stop increasing, this could be a natural boost for the ASX All Ords stock, the passive income it can generate, and the underlying fund managers.

The post Want $1,000 in monthly passive income? Buy 29,270 shares of this ASX All Ords stock appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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I think the ASX share market is a great way for investors to build wealth. It’s possible for some investments to grow significantly. People can use that to make hundreds of thousands of dollars, or perhaps even $1 million.

Of course, nothing is certain in the share market. For starters, volatility can throw up a lot of uncertainty and cause large swings over a short time period.

Plus, just because a business is doing well now doesn’t mean it will be doing well in five years or ten years.

But, if we can identify the ones that have a long growth runway and are executing well on their goals then they may be able to achieve large financial gains.

I’ve picked out three names that I think could produce great compounding returns over the next decade. If I invested $50,000 in each of them and held for the long term, I’d hope to be able to reach $1 million with ASX shares.

Vaneck Morningstar Wide Moat ETF (ASX: MOAT)

This is one of my preferred exchange-traded funds (ETFs). It enables investors to buy a group of US-listed businesses that have strong economic moats. In other words, the businesses are rated as having strong competitive advantages.

Competitive advantages can come in many different forms, including intellectual property, brand power, cost advantages or other forms of an economic moat.

But, the portfolio only invests in those businesses when Morningstar analysts think it’s trading at an attractive price.

This investment style has led to the index that the ETF tracks to return an average return per annum of 19.2% over the last decade to March 2023 and 17.1% per annum over the past five years.

Past performance is not a guarantee of future results at all, particularly if we’re talking about returns of more than 15% per annum. But, without a working crystal ball and for the fun of doing the calculation, if the $50,000 were to grow at 17% per annum over the next decade, then it could turn into approximately $240,000.

Airtasker Ltd (ASX: ART)

Airtasker is a very different company from the sorts of businesses that Vaneck Morningstar Wide Moat ETF invests in. It’s another one I’d choose for a $50,000 investment.

The ASX share offers a platform that allows users to advertise a task that needs doing. That task could be almost anything – furniture assembly, accounting, photography, removalists, painting, food delivery and so on.

It’s a small business with a market capitalisation of around $100 million. I’m looking at it as an idea that could grow significantly. Just growing to a $1 billion valuation would mean the business is ten times bigger, which could mean the $50,000 investment growing to $500,000, assuming the Airtasker share count doesn’t change much.

How likely is Airtasker to achieve that growth?

I think the company has a lot to like about it. It has a gross profit margin of more than 90%, which means that a large majority of new revenue turns into gross profit, which can be used to invest for further growth, such as marketing or product development. Its software-based operating model also means that it doesn’t take much capital to grow.

It’s targeting the very promising and large markets of the United States and the United Kingdom. Airtasker is growing quickly.

In the FY23 half-year result, trailing 12-month (TTV) UK gross marketplace volume (GMV) saw 83% growth year on year to £3.5 million, while UK revenue rose 153% to £0.4 million. US posted tasks grew 5.5x year over year to 34,000, with tasker offers up 9.4x year over year to 54,000. Total organic revenue grew 23% to $17.1 million.

If the ASX share can keep growing revenue, then I think it can keep re-investing and growing strongly.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is a retailer of affordable jewellery with a global network of stores. It has a sizeable position in Australia, France, Germany, the UK, South Africa and the US. This is the third pick I’d invest $50,000 into for growth.

But, I think the company has plenty of potential to add a lot more stores in France, Germany, the UK and the US.

There are also some very promising markets that Lovisa has only recently entered into, where it only had a small number of stores (less than five) at the time of the FY23 half-year result. These include Canada, Mexico, South America and Hong Kong.

I believe there is huge potential for this company to roll out hundreds, if not thousands, of new stores across the world, particularly if it’s able to successfully expand into India and mainland China.

I think the ASX share’s profit can grow significantly in the coming years, which will enable the Lovisa share price to keep climbing.

There’s also the potential that the business could decide to increase its addressable market with an offering of more expensive jewellery, perhaps with a different brand. But, that’s not a core part of my thesis.

Not only could the profit grow, but Lovisa’s dividend could also keep growing too, which would add to the wealth-building effect.

The post Want a possible $1 million in retirement? Invest $50,000 each in these 3 ASX shares and wait a decade appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker. The Motley Fool Australia has recommended Lovisa and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you want to make some buy and hold investments but aren’t sure which ASX shares to buy, then you could look at exchange traded funds (ETFs) instead.

That’s because ETFs allow you to invest in a large group of shares in one fell swoop.

But which ETFs might be top buy and hold options? Listed below are three top ETFs that could be worth considering as long term investments:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The BetaShares Global Cybersecurity ETF could be a top buy and hold option for investors.

Given the high profile cyber incidents that have happened over the last 12 months, it will be no surprise to learn that worldwide spending on cybersecurity is predicted to increase materially in the future. This bodes well for the companies included in this fund, which are working to reduce the impact of cybercrime globally. This includes Accenture, Cisco, and Cloudflare, Crowdstrike, Okta, and Palo Alto Networks.

Over the last five years, the ETF has generated an average annual return of 14.92%. This would have doubled a $10,000 investment into approximately $20,000.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another ETF to consider as a buy and hold investment is the BetaShares NASDAQ 100 ETF.

This ETF gives investors access to the 100 largest non-financial shares on the famous NASDAQ index. These are many of the largest companies in the world such as Amazon, Alphabet, Apple, Meta Platforms, Microsoft, and Tesla. Collectively, these 100 companies appear well-placed for growth over the long term, which bodes well for the performance of this ETF.

Over the last five years, this ETF has generated an average annual return of 18.43%. This would have turned a $10,000 investment into approximately $23,300.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Legendary investor Warren Buffett is a big fan of buying and holding high quality companies with sustainable competitive advantages or moats. And if you look at his incredible track record, this strategy clearly works!

The good news is that the VanEck Vectors Morningstar Wide Moat ETF makes it easy for investors to replicate his strategy. It currently contains approximately 50 shares with these qualities, including the likes of Alphabet, Boeing, Kellogg Co, Meta Platforms, and Walt Disney.

Over the last five years, the ETF has returned 16.78% per annum. This means a $10,000 investment would have turned into approximately $21,700.

The post Buy and hold these 3 ASX ETFs for a decade appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF and BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF and BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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